What Is the Best Burial Insurance for Seniors?
There are two kinds of burial insurance plans available: regular burial insurance and pre-need insurance. Each policy is intended to cover end-of-life expenditures, but the primary distinction is who receives the death benefit proceeds. The cost of this sort of life insurance will vary depending on your age, but as with other types of life insurance plans, you will be able to get cheaper rates if you are younger. Even if you have life insurance as a senior, a burial insurance policy might provide an extra safety net for unexpected needs.
What is burial insurance for seniors?
Burial insurance, sometimes known as final expense insurance, is a type of life insurance policy that is intended to cover end-of-life expenses. This is often a whole life insurance policy with a reduced death benefit, usually less than $25,000, that will pay any expenses you leave behind after your death. Typical applications include:
- Memorial service
- Wake
- Burial or cremation
- Funeral
- Casket, urn or headstone
- Outstanding debts
Because burial insurance is a whole life policy, there is no maximum term of coverage - you will be protected for as long as you pay your premiums. Furthermore, premiums are fixed, which means they will not change.
Choosing the appropriate death benefit for your burial insurance is critical to obtaining the finest policy and avoiding overpaying in premiums. When choosing a burial insurance policy, attempt to estimate current pricing for everything that will be required for the funeral. After you have obtained a few quotes, you should examine other expenses that may arise following your death. For example, unpaid credit card bills or loans. Unfortunately, these common debts will be passed on to your next of kin and are frequently overlooked during the planning process.
Once you've estimated these prices, you should match the expenses to a face value that meets your demands. Most senior burial insurance plans provide coverage ranging from $2,000 to $50,000. With the average funeral costing roughly $9,000, you'll have more options if you want your life insurance to cover additional final expenses.
Do I need a funeral plan if I already have life insurance?
if you need funeral insurance depends on who you want the death benefit to go to and if you have enough coverage. For example, suppose you had a $200,000 term life insurance policy. You purchased this policy with the goal of providing financial assistance for your children's college tuition in the event that you died. In this instance, it would be prudent to consider acquiring a second burial insurance policy, the death benefit of which could be used solely for your final expenses, while your dependents may utilize the other plan for their schooling.
Other factors to consider include your present health and the length of your current coverage. Assume you have term life insurance to give financial security, but the policy has just 5 years left and your health is not in good shape. Because you may be unable to renew or purchase a new term policy, you may want to consider investing in a simple issue whole life policy, which would offer coverage for the rest of your life and just need you to complete a health questionnaire.
Can I get a burial insurance policy with no waiting period?
There is no waiting period to obtain a burial insurance policy. However, you may be required to have a medical checkup or complete a health assessment before receiving your coverage. A 24- to 36-month waiting period is required for all assured issue whole life plans. If you died within this period, the death benefit would not be paid out and your beneficiary would be repaid the premiums. Life insurance firms enacted this restriction to prevent sick people from acquiring a life insurance policy immediately before they died, thus minimizing the risk exposure.
Burial insurance for seniors vs. pre-need insurance
You can buy two forms of funeral expense insurance: regular burial insurance and pre-need funeral insurance. A conventional burial policy is pretty comparable to the majority of life insurance policies. The funds of your death benefit will be transferred to your designated beneficiaries, who can then utilize the money for any and all funeral expenses.
Pre-need funeral expense insurance, on the other hand, is more stringent and has certain critical differences to consider before selecting the finest funeral insurance policy, including:
- Beneficiary: When obtaining this sort of coverage, you will name the funeral home as the beneficiary, which will handle any funeral preparations made prior to your death.
- Death Benefit Proceeds: The death benefit would be paid directly to the funeral home and would equal the whole cost of the funeral arrangements.
The one advantage of pre-need insurance is that you are billed for funeral services in advance, which eliminates any planning your loved ones would have had to make. However, your dependents would not receive any death benefit proceeds, and the premiums are frequently higher than those for other types of burial insurance.
Furthermore, because the full death benefit would cover the burial expenditures, pre-need policies are not very flexible. Most people have debts that they have not paid off before they die. If you had a pre-need policy in this instance, your loved ones would be required to pay for those fees out of their own resources. As a result, most seniors would benefit from a typical burial insurance coverage, which is far more flexible.
How much does burial insurance for seniors cost?
When you apply for burial insurance, the fee will vary depending on your age. Funeral insurance is often best suited for persons aged 50 to 85. To get the greatest funeral insurance prices, we recommend purchasing coverage in your early senior years.
For example, seniors in their 60s pay $43 a month on average for a policy with a $10,000 death benefit. If you waited until you were in your 80s, you would end up spending $136 per month, which is 68% more.
Burial insurance for seniors in their 60s and 70s
If a senior decides to obtain burial insurance coverage in their 60s, they can get the greatest prices imaginable. If you are in good health at this stage, you could obtain a small whole life insurance policy that will offer death benefit coverage for the remainder of your life. Furthermore, if you elect to take a medical exam, you may be able to lower the monthly premium you must pay for coverage.
Most forms of burial insurance plans, including regular whole life and no exam options, are still available to seniors in their 70s.
Burial insurance for seniors over 80
Once you reach the age of 85, most insurers will begin to limit the availability of burial insurance policies, and you're unlikely to find a burial insurance plan that requires no medical examinations or health questionnaires. However, reputable insurance firms can still provide coverage. Foresters, for example, offers its PlanRight whole life insurance plan, which provides death benefit coverage ranging from $2,000 to $35,000 for people up to the age of 85.
Burial insurance for seniors over 90
It may be difficult to locate an insurer willing to give burial insurance coverage if you are beyond the age of 90. Furthermore, no insurance company will almost certainly offer a plan with no health questions. At this stage, average monthly rates for a policy with $10,000 of coverage can exceed $249.